Friendster failure

Friendster

Social gaming site focused on entertainment

Description

Friendster was a social gaming site and can be considered the first prototype of social networking sites as we know them. It was widely popular in the Asian region and boasted about 115 million registered users in 2011. Through the platform, users could take part in online games, send messages, write comments, post media and share content with other users publicly or privately. It was also used for dating, discovering new events and joining new hobbyist circles.

Stats

Category
Social Media
Country
Philippines
Started
In 2001
Closed
By 2015
Number of Founders
One
Name of Founders
Jonathan Abrams
Number of Employees
Between 11 And 50
Number of Funding Rounds
5
Total Funding Amount
$48.5M
Number of Investors
7
Precise Cause of Failure
Bad Market Fit
Business Outcome
Shut Down

Cause of Failure

Friendster seemed like a fun place to hang out, with all the right bells and whistles to lead the way, what went wrong, then?

Friendster did two things particularly well: it offered social gaming and it gave users reasons to keep coming back to its platform. What it seemed to have missed creating, instead, was an actual social network. If one had to point out a major point that made Facebook soar, and that Friendster and other similar sites didn’t catch up with, was the presence and the emphasis put on the social news feed feature.

Gaming is fun, but only until a certain point, while social interactions - of any kind, really - are always sought after by people. By making the news feed the central part of its platform, Facebook ensured that people always had new things to interact with that somehow was still connected to them or their circle of friends. It offered a never-ending stream of new posts and pictures to like or comment on and it shifted away from the previous focus which was to curate and polish one’s own profile, which was exactly still one of Friendster’s focus. User use and registration declined and the company struggled to regain influence and shut down.

Go on Reading

Other Startups

Startup Cemetery

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

Subscribe to Our Newsletter!

Receive our weekly newsletters with the latest startup-related articles and interviews.

Friendster

Social gaming site focused on entertainment

General Information
Category
Social Media
Country
Philippines
Started
In 2001
Business Failure
Business Outcome
Shut Down
Closed
By 2015
Cause of Failure
Bad Market Fit
Founders & Employees
Number of Founders
One
Name of Founders
Jonathan Abrams
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
5
Total Funding Amount
$48.5M
Number of Investors
7
Description

Friendster was a social gaming site and can be considered the first prototype of social networking sites as we know them. It was widely popular in the Asian region and boasted about 115 million registered users in 2011. Through the platform, users could take part in online games, send messages, write comments, post media and share content with other users publicly or privately. It was also used for dating, discovering new events and joining new hobbyist circles.

Cause of Failure

Friendster seemed like a fun place to hang out, with all the right bells and whistles to lead the way, what went wrong, then?

Friendster did two things particularly well: it offered social gaming and it gave users reasons to keep coming back to its platform. What it seemed to have missed creating, instead, was an actual social network. If one had to point out a major point that made Facebook soar, and that Friendster and other similar sites didn’t catch up with, was the presence and the emphasis put on the social news feed feature.

Gaming is fun, but only until a certain point, while social interactions - of any kind, really - are always sought after by people. By making the news feed the central part of its platform, Facebook ensured that people always had new things to interact with that somehow was still connected to them or their circle of friends. It offered a never-ending stream of new posts and pictures to like or comment on and it shifted away from the previous focus which was to curate and polish one’s own profile, which was exactly still one of Friendster’s focus. User use and registration declined and the company struggled to regain influence and shut down.

Go on Reading

Beepi

P2P used car online marketplace

Transportation
Acquired
$149M
Mismanagement of Funds
Transportation
United States
In 2013
By 2016
Two
Between 101 And 250
More Than 50M
Mismanagement of Funds
Acquired
Transpose

Smart workspace for businesses to manage projects

Productivity
Shut Down
$1.5M
Bad Business Model
Productivity
United States
In 2015
By 2015
Four
Between 11 And 50
Between 1M 10M
Bad Business Model
Shut Down
Netscape

Developed enterprise software solutions

Productivity
Shut Down
No Data
Poor Product
Productivity
United States
In 1994
By 2008
Three
Between 5001 And 10000
No Data
Poor Product
Shut Down
Design Inc.

Marketplace for high-quality design work

Design
Shut Down
$2.3M
Bad Business Model
Design
United States
In 2016
By 2017
Two
Between 1 And 10
Between 1M 10M
Bad Business Model
Shut Down
Argyle Social

Provided social media management tools

Marketing
Shut Down
$1.6M
Competition
Marketing
United States
In 2010
By 2014
One
Between 11 And 50
Between 1M 10M
Competition
Shut Down
SpoonRocket

Next-gen, ultra-fast delivery platform

Food and Beverage
Shut Down
$13.5M
Competition
Food and Beverage
United States
In 2013
By 2016
Two
Between 11 And 50
Between 10M 50M
Competition
Shut Down